Looking for an in-depth guide into Cyprus’ real estate trends of 2020?
Look no further, as we have collected an in-depth guide into this year’s market trends and what’s around the corner. The real estate market in Cyprus has been through a fascinating development over the last several years, none so more than in 2020.
Progress & Transformation
Building on the back of what was an incredible year for the market in 2019, the market is expected to see a significant array of innovative upgrades alongside rapid developments.
With these factors in place, a positive trend of innovation and rapid development will attract an influx of foreign investment for all around the world, as local projects become more appealing. One of the most significant factors moving forward in 2020 is the banks risk appetite as they look to offer several types of financing to attractive investment projects.
Corporate Developments
Corporate developments are always a significant area of growth on the island and its widely expected to continue in 2020. As companies throughout the world have continued to flock to Cyprus as their European base, it is expected that a large amount of companies will be looking to move into key locations across the island.
By the tail end of 2020, several large-scale projects are projected to be completed allocating around 260,000 sqm of office space and corporate locations to businesses looking to relocate. The capital city Nicosia is seeing significant investment in this area with exciting completed projects such as the Capital Gate and the Asteroid Tower.
Retail Investments
The retail sector is forecasted to receive a windfall of large scale investments moving forward in 2020, as several large-scale shopping centers and retail projects are expected to move forward. Developments such as Neo Plaza in Nicosia, meant to span over 55,000 sqm of land, is meant to house over 50 shops and over 10 restaurants. Larnaca’s Metropolis Mall, is set to be Larnaca’s first mall, meaning development is progressing across the island.
Industrial Sector
In 2019 the industrial sector saw a large expansion in both industrial as well as land developments. More than 10,000 sqm of developments were completed that added onto the current supply of over 340,000 sqm. This sector is also receiving additional facilities for 2020 with operating companies looking to establish themselves in the market.
Residential Developments
Residential developments are one of the most fast-growing sectors that we have seen over the last year and continuing into 2020. The demand of high-end luxury apartments has seen developments of some of the most impressive buildings this island has seen. Projects such as Nicosia’s “360” which is completed and Limassol’s “One”, which is under construction have been established as the largest ever constructions in each city respectively. Larnaca’s Kition and Limassol’s Del Mare projects also showcase some of the islands most premium residencies and with demand unwavering, we will see this continue to the tail end of 2020.
Tourism Industry
The lifeblood of the islands finances has always come from the tourism industry and that will not be changing anytime soon. So, it’s by no means an accident that we see the Hotel industry’s constant development and 2020 sees that continue. With new projects such as Atlantica Mare Village opening in Paphos, we are seeing no shortage in investment in the island’s tourism sector.
Covid-19
The effects of the global pandemic were felt throughout every type of industry, the real estate industry was no exception. With unprecedented uncertainty around the world due to governmental lockdowns alongside travel bans, the real estate market temporarily was frozen out. New projects were kept on hold as international investors were not allowed to fly in and the banks’ processes of promoting their properties on the market were halted as which resulted in a lot of delays to current projects.
As time progresses however, we can see an overall positive trend as governments learn to manage the situation and businesses getting back to work. Temporarily frozen projects have also been resumed setting up a positive end of the year as well as a golden 2021.
Moving Forward to 2021
Whilst the effects of a post-covid hangover will still exist moving forward into 2021, there are incredible projects that are predicted to be completed in Cyprus that will boost the Real Estate Market as a whole.
The opening of the new City of Dreams Casino Resort Hotel will be the first project of its kind on the island. With over 500 5* rooms, 11 world-class restaurants and bars and incredible new casino, the project will help push the market forward and entice other investors.
Add to that, the completion of the Ayia-Napa Marina as well as the stunning “One” building that will forever change the skyline of Limassol, the Cyprus Real Estate trend of 2021 looks to be as exciting as ever.